Antidumping duty imposed on imports of graphite electrodes

NEW DELHI: The government has imposed an anti-dumping duty of up to $922.03 per tonne on imports of a product used in steel plants, a step to protect the domestic industry from below-cost shipments.

The Finance Ministry imposed the import duty on a type of graphite electrodes based on recommendations of the Directorate General of Anti-Dumping Duty ( DGAD) for five years. The duty ranges between $ 278.19 and $ 922.03.

The main use of graphite electrodes is in melting of steel.

The DGAD had initiated and conducted investigation into dumping, injury and causal links between dumping and injury to the domestic industry.

In its final findings, the DGAD said it "is of the opinion that definitive measure is required to be imposed to offset dumping and injury being caused to the domestic industry" and recommended the imposition of the anti-dumping duty.

It said the production, sales and capacity utilisation of the domestic industry has declined in the period of investigation (January 2012-December 2012) after a healthy growth during the previous years, while imports increased substantially over the injury period (April 2009-December 2012).

The DGAD had carried out the probe into the dumping on complaints of domestic manufacturers -- HEG and Graphite India.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.